Will this week’s leading indicators support speculations of an RBNZ rate cut this year? Check out the catalysts you need to watch out for!
Business NZ manufacturing index (Apr 11, 11:30 pm GMT)
If last week’s price action has taught us anything, it’s that Kiwi bulls and bears pay attention to business surveys from New Zealand.
And why not? The economy depends a lot on its exports, so business owners (a lot of which are exporters) have a lot of weight in the Reserve Bank of New Zealand (RBNZ)’s policies.
This week we’ll see what Business NZ’s participating manufacturers have to say. If y’all recall, the index came in at 53.7 in February. Can March’s reading sustain the expansion? Or will it reflect less optimistic conditions like the one we saw with NZIER’s release?
Overall market sentiment
New Zealand doesn’t have a lot of top-tier data going for it this week, so traders will most likely take cues from data releases from other major economies.
The ECB’s monetary policy decision could get some volatility for EUR/NZD, while the Fed’s meeting minutes and a couple of FOMC members’ speeches should also get some attention.
Meanwhile, Brexit-related headlines could affect price action for a lot of higher-yielding currencies. Last but not the least, China’s data dump on Friday could make or break the Kiwi’s intraweek results.
Don’t even think of missing any of these releases!
Missed last week’s price action? Read NZD’s price recap for April 1 – 5!